Which of the following accounts would not be closed at the end of the period:

		Service Revenue
		Interest Expense
		Accounts Payable
		Dividends

Once closing entries have been made, the balance in the Retained Earnings account matches the end-of-month figure on the Retained Earnings Statement.

		true
		false

Revenue must be recorded in the accounting period in which it is earned, regardless of whether it has been received in cash yet.

		true
		false

A company began the month with $300 in the Supplies account. $900 more supplies were bought during the month and were added to the account. Throughout the month, the account was not updated when supplies were used. At the end of the month, only $200 of supplies were left. The entry to adjust the supplies account would be:

		debit Supplies and credit Supplies Expense for $1,000
		debit Supplies Expense and credit Supplies for $200
		debit Supplies Expense and credit Supplies for $1,000
		debit Supplies and credit Supplies Expense for $200

All of the accrual adjusting entries include either a receivable or a payable account.

		true
		false

A company pays $2,000 in salaries to employees each Friday for 5 days of work (Monday through Saturday). If the month-end is on a Thursday, the adjusting entry will be:

		debit Salaries Payable and credit Salaries Expense for $1,600
		debit Salaries Payable and credit Salaries Expense for $400
		debit Salaries Expense and credit Salaries Payable for $1,600
		debit Salaries Expense and credit Salaries Payable for $400

The ledger of Jones Co. shows $4,400 in the Unearned Revenue account for services prepaid by client Hanson Co. at the beginning of the month. Three-fourths (75%) of the Hanson job was completed by the end of the month. The adjusting entry is:

		debit Service Revenue and credit Unearned Revenue for $3,300
		debit Unearned Revenue and credit Service Revenue for $1,100
		debit Unearned Revenue and credit Service Revenue for 3,300
		debit Service Revenue and credit Unearned revenue for $1,100

A company's ledger shows $2,000 in the Prepaid Insurance account. The adjusting entry the company would make to record that $400 of the policy has expired by the end of the month would be:

		debit Insurance Expense and credit Prepaid Insurance for $1,600.
		debit Insurance Expense and credit Prepaid Insurance for $400.
		debit Prepaid Insurance and credit Insurance Expense for $1,600.
		debit Prepaid Insurance and credit Insurance Expense for $400.

Our company agrees to hire a landscaping company to provide $500 in lawn services. No payment is made at the time of the agreement and no work has yet been performed by the landscaping company. The related journal entry would be:

		There would be no journal entry made at this time.
		Debit to Lawn Care Expense and credit to Accounts Payable for $500
		Debit to Lawn Care Expense and credit to Cash for $500
		Debit to Accounts Payable and credit to Cash for $500

Interest of $75 has accrued during the month on a note payable. The company's adjusting entry to record this at the end of the month would be:

		debit Interest Receivable and credit Interest Revenue for $75
		debit Interest Revenue and credit Interest Receivable for $75
		debit Interest Payable and credit Interest Expense for $75
		debit Interest Expense and credit Interest Payable for $75